Earthquake, Tsunami in Japan may shake Flash Drives and Memory products market globally

The supply of flash memory chips, a principal component in hot-selling tablets and smart-phones, will likely be affected by the earthquake in Japan, according to a report. But the factories that manufacture flash are well to the south of the quake's epicenter, possibly mitigating the impact.

An 8.9 magnitude earthquake and series of big tsunami hit Japan on Friday, causing massive damage. Over 40 percent of the world's NAND flash and roughly 15 percent of the world's DRAM are manufactured in Japan, according to a report released today by Objective Analysis, a firm that does semiconductor-related market research.

Most of Toshiba's flash chip (NAND) production in Yokkaichi, far south of the earthquake's epicentre. U.S.-based SanDisk also gets flash chips from this location. (Credit: Objective Analysis) SanDisk, which sources flash memory from a Toshiba manufacturing facility in Yokkaichi, reported a shutdown of manufacturing plant.

Apple is large consumer of flash memory and has signed half a billion dollar deal with Toshiba in the past for supply of flash memory. But Apple has alternative sources for flash memory such as Samsung and Micron Technology.

Much nearer to the earthquake's epicenter, Fujitsu and Toshiba have wafer fabs in Iwate prefecture. Fujitsu's Iwate plant manufactures flash microcontrollers and system chips for games machines, digital appliances, and automotive products, according to EE Times.

"Currently, there are indications that the Iwate factory has been affected by a power outage. All factories are being inspected for damage," Toshiba said.

In response to such news prices of all storage and memory products have gone up upto 40%. As a result all supplier in e-commerce space have requested to de-list their products from online retail websites.

I think there are negative sentiments in the market which has evidently increased prices of flash drives and memory products. Un-stable situation of Japan has been adding to it. There were 2 blasts in nuclear reactors already. T the same time vendors for such product finding it as opportunity to earn. There might be slight rise in the prices but now vendors looking at earning more on their stocked inventory.

E-commerce site too procuring good no of Sandisk pendrive from their vendors on consignment basis at the same time, online retailers are planning to run a special promotion on pen drives, external HDD and memory cards to book their top line.

Picture is still hazy. There may be substantial price hike due to low or no manufacturing of memory products in Japan. Sony has also shut their operation. But all this is a part of precautionary measures from the companies.

Hopefully soon life will be on track in Japan. My prayers and best wishes with Japan

God Bless Japan!!

Nikhil Kunwar

After Launch of iPad 2, online retail websites are best medium to dispose iPad 1

iPad 2

We are living in era where every latest gadget gadget gets obsolete soon after its launch. Steve Jobs launched iPd 2 with many advanced features. Apart from several sleek enhancements over its predecessor, the iPad 2 will come at the same price tag, forcing new tablet buyers to instead wait for it to arrive and not fall for the first Apple tablet. Though its launched but will be available in 27 countries in next 2 months. 

Gadget freak and tech savvy people already started disposing their tablet. there is substantial rise in auction of iPad 1 on websites like eBay. at the same time sellers facing huge fall in fresh iPad 1 sale. 

in such dynamic technological world online retail is obviously better then conventional retail. e-commerce has better reach and flexibility to sustain in a longer run. Its not only iPad there are same cases with other Mobile & IT products. After iPad products like Blackberry's Playbook, Dell's Xoom going to make this market more competitive and interesting to follow.

In this ever changing technological world, I see online retail has edge over conventional retail format.

Nikhil Kunwar

Cash on Delivery: Gain for Customers, Pain for Service Providers

Shop online even you do not have credit card..

Online travel service providers, such as Yatra, Makemytrip and Travelmasti, are strengthening offline offerings to make people who do not have access to credit cards avail of their services, as they look to expand consumer base.

After witnessing success of Cash on Delivery' (COD), Yatra has  announced launch of a new 'Cash on Delivery' (COD) service that enables the consumers to make bookings online or through a call centre and make payment in cash. Similarly, while Travelmasti is looking to double the number of retail outlets in the next two years, Makemytrip has recently launched a new mobile application to give consumers an additional platform.

Online shopping sites like eBay, Home Shop18, Tradus and timtara are already banking big time on COD.  There are few factors behind success of COD-

·         In India people have fear factor while using their credit card online.

·         Many people do not have Credit Card

·         COD orders can be taking over phone, so customer need not to be internet user

·         At times,  Indians do not want to spend in advance

In such instances COD is very fruitful from customer end. But from service provider end its not preferable though it increases the business 50-60% straight away.

 2 biggest challenges are-

·         In COD, payment collection cycle gets prolonged as your courier partner collects money and from them you get your money after deducting courier COD charges.

·         Return rate in case of COD is very high as customer anytime can refuse to accept his order. Customer has not paid in advace, you sent order and somehow customer’s mid git changed, he simply deny to accept. But service provider already invested courier to & fro charges and time for the same.

Thus, companies in e-commerce domain adding COD feature to enhance thir reach and volume of business. It really good option from customer’s end but really hard to manage from seller’s end.

Nikhil Kunwar

Virtual Shopping Mall on Facebook

San Francisco-based Payvment, which makes software that can turn Facebook pages into storefronts that accept a credit card or eBay's PayPal online payment service. Payvment has been starting 250 new Facebook retailers daily; that's up 42 percent since August. Its stable of more than 40,000 retailers offers more than 750,000 items, including all-natural cosmetics, handmade jewelry, and T-shirts.

Shopping Mall app helps solve a problem with e-commerce on Facebook, which is that each seller was operating individually and Facebook users didn’t know all the Facebook pages that offered products. For example, if a Facebook user wanted to shop for Converse sneakers on Facebook, he might have gone to Converse’s Facebook page, but he wouldn’t have known there were other merchants also selling Converse on the social network. A search in the Shopping Mall would show all the Converse products available for sale from all merchants using the Payvment app to sell in Facebook. 

The new app is marvelously straightforward: Like any other mall, the Shopping Mall brings all these sellers under one roof having Payvment storefronts and categorize shopping experiences by seller, items, bestsellers, recommended items, besides, makes it easier to browse, research, and buy goods, all without leaving the social media network.

“The Shopping Mall on Facebook is where online shopping gets truly social,” said Christian Taylor, founder and chief executive officer of Payvment.

“We are confident that the Shopping Mall on Facebook will be the place people go to discover new brands, great deals, and the products they and their friends want.”

The platform will allow users to shop around different Facebook storefronts with one universal cart and unlike traditional malls, Payvment's Shopping Mall also includes an individualized section that shows you what you and your friends are “liking” on the mall, and get recommendations based on their Facebook interests.

Furthermore, the most inventive feature of the platform is probably Payvment's universal shopping cart and checkout feature, which allows the user to add items from different stores to the same cart and go through one checkout process.

A “Your Cart” feature holds on to your saved items in a universal and updates pricing and inventory information. So basically, you can add a $300 crystal necklace from Molly Sims' storefront to the same cart to which you add a hand-knitted baby blanket from a private seller in Spokane, Washington, and you can buy both in one checkout process. Facebook users can also comment on any item and post comments to their News feed.

What’s there for e-commerce in Union Budget 2011

The Union Budget has a couple of interesting notes for the digital industry –

·         Concessions for mobile parts and accessories remains in force for one more year

·         While software including games and music will have to pay less service tax.

Rural broadband also gets a mention, but overall the budget was largely neutral for telecom and IT.

National Innovation Council under Sam Pitroda has been set up, with each state having a council for innovation. This will surely create a favourable atmosphere micro entrepreneurship. A strong stimulus for India grown e-commerce products to reach to masses and create village level entrepreneurs. E-commerce has enabled Indian manufacturers and retailers multiply its’ reach to global markets. With Indian online stores on internet, the retail sector is looking very promising. Online retail has seen 30 per cent year on year growth in a 27,000 crore e-Commerce market in India."

Another positive for e commerce is overall allocation of Rs. 58,000 crore for Rural telecom and broadband services. This will trigger better reach of internet to rural India. The government plans to provide rural broadband connectivity to all 2.5 lakh Panchayats in three years. With broadband penetration in rural areas there is two way benefit opportunity for rural India.

·         Rural manufacturers will get bigger reach to the market.

·         Reduction of Intermediaries- which ultimately increase margins for rural manufacturers and farmers.

·         This will bring access to rural India, best trade practices, updated knowledge, quality products and profitable business offers."

Retail pundits were discussing and debating on Multi Brand FDI in Retail since long. But Finance Minister did not take any interest in it. MNCs in e retail such as ebay, ibibo.com & HS18 are waiting to open up FDI so that they can shift stock n sell model from vendor based model of e retail.

Rise in service tax will make things stiff for e-commerce. 

Overall budget is neutral for IT, telecom and internet industry. There are few positives like broadband service for rural India. Hopes from Mr Sam Pitroda now. Expecting innovative steps from his National Innovation Council.

Nikhil Kunwar